10 ways to improve trading strategy Chapter 05 Exness ~ USD

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Minggu, 27 Agustus 2017

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10 ways to improve trading strategy Chapter 05 Exness



Chapter 05 Think in terms of areas instead of levels

EXNESS
Proudly sponsor the world's number one football team, Real Madrid, and the best football player alive, Cristiano Ronaldo


Think in terms of areas instead of levels The mention of support and resistance may have you thinking of a linear, horizontal level, but that is far from how professional traders view it. In reality, smart market participants accumulate positions around certain price levels—we refer to this as the area. This perspective of support and resistance translates to a more sophisticated view of the market, allowing one to transcend the imaginary boundaries set by horizontal levels. How does one avoid the misconception surrounding support and resistance and effectively use these reference points? Below are key principles to bear in mind. 

1. Find a trading range which exists in the context of a trend. In a free floating market which has no directional (trending) component, the trading range can be very volatile, with unexpectedly big moves. Conversely, if there was a trending component, odds are the volatility of correctional moves would be limited, and traders might do a better job identifying support/resistance areas.

In the example below, Gold (XAUUSD) was climbing with a notable trending component (ascending trend), resulting in a relatively narrow support area that allows traders to use as a trade location to build positions with limited risks.




2. Don’t expect a rapid market reversal the moment it enters support/resistance area. The market does not go in your preferred direction just because it enters your support/resistance area. Similarly, it can also stay within the area for several days. That is market logic. Institutional traders who are responsible for supporting the market accumulate a position over time and tend to keep a position for a while before they see positive results—that is if the market goes in their preferred direction.

3. Take note of entry and stop placements. After identifying a trend, traders who wish to join a market in the support area usually wait for the market to consolidate before applying the Envelopes indicator. This allows them to define the deviation parameter manually to ensure that the highest and lowest points of the indicator’s curve touch the recent highs and lows. 

One of the common methods used by traders to limit losses is the placement of stop loss order. A methodical way for setting a stop loss is to consider the market’s volatility and your own risk-appetite. Many traders use the ATR indicator when setting their stop loss order. The stop loss order may be set at multiples or submultiples of the ATR value.

In the graph below, we have taken the highest ATR value, multiplied it by two, and added the value to the point where the price touches the Envelopes. Ensure that your increased stop loss will not lead to increased risk; decrease the size of your positions accordingly.




Key Takeaway
Smart traders consider the direction of the trend before building a position within the support/resistance areas. A common practice among professional traders is also the application of Envelopes indicator in the chart to add zones and thereby build the support/resistance areas (refer to the example above).


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EXNESS
Proudly sponsor the world's number one football team, Real Madrid, and the best football player alive, Cristiano Ronaldo





You can use any amount of leverage, ranging from 1:2 to 1:UNLIMITED*, when trading on the forex market through Exness. This provides you with the freedom to choose the trading strategies that suit your deposit size. 

Exness leverage depends on the type of trading account and the volume of funds it contains. Margin requirements increase when the funds available in a client's account increase. This is due to the increasing costs of hedging open orders. As a result, leverage is changing as well.



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BAHASA INDONESIA
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BAB 05 Pikirkan dalam hal area



Proudly sponsor the world's number one football team, Real Madrid, and the best football player alive, Cristiano Ronaldo


Pikirkan dalam hal area, bukan tingkat Penyebutan dukungan dan hambatan mungkin telah Anda pikirkan secara linier, horizontal, tapi itu jauh dari bagaimana pedagang profesional melihatnya. Pada kenyataannya, pelaku pasar pintar mengumpulkan posisi di sekitar tingkat harga tertentu-kami menyebut ini sebagai area. Perspektif dukungan dan hambatan ini diterjemahkan ke pandangan pasar yang lebih canggih, yang memungkinkan seseorang untuk melampaui batasan imajiner yang ditetapkan oleh tingkat horizontal. Bagaimana seseorang menghindari kesalahpahaman seputar dukungan dan perlawanan dan secara efektif menggunakan poin referensi ini? Berikut adalah prinsip utama yang harus diingat.

1. Temukan rentang perdagangan yang ada dalam konteks tren. Di pasar terapung bebas yang tidak memiliki komponen terarah (trending), kisaran perdagangan bisa sangat fluktuatif, dengan pergerakan yang tak terduga. Sebaliknya, jika ada komponen tren, kemungkinan besar volatilitas pergerakan pemasyarakatan akan terbatas, dan pedagang mungkin melakukan pekerjaan yang lebih baik untuk mengidentifikasi area dukungan / resistensi.


Pada contoh di bawah ini, Gold (XAUUSD) mendaki dengan komponen trending yang terkenal (tren naik), menghasilkan area support yang relatif sempit yang memungkinkan trader untuk menggunakan sebagai lokasi perdagangan untuk membangun posisi dengan risiko terbatas.

2. Jangan mengharapkan pembalikan pasar yang cepat saat memasuki area support / resistance. Pasar tidak masuk ke arah pilihan Anda hanya karena memasuki area support / resistance Anda. Demikian pula, ia juga bisa tinggal di dalam area tersebut selama beberapa hari. Itulah logika pasar. Pedagang institusional yang bertanggung jawab untuk mendukung pasar mengumpulkan posisi dari waktu ke waktu dan cenderung mempertahankan posisi untuk sementara sebelum mereka melihat hasil positif - yaitu jika pasar berjalan sesuai arah pilihannya.

3. Catat masuk dan berhenti penempatan. Setelah mengidentifikasi tren, pedagang yang ingin bergabung dengan pasar di area support biasanya menunggu pasar berkonsolidasi sebelum menerapkan indikator Amplop. Hal ini memungkinkan mereka untuk menentukan parameter penyimpangan secara manual untuk memastikan bahwa titik tertinggi dan terendah dari kurva indikator menyentuh tinggi dan tinggi arus terbaru.

Salah satu metode umum yang digunakan oleh trader untuk membatasi kerugian adalah penempatan stop loss order. Cara metodis untuk menetapkan stop loss adalah mempertimbangkan volatilitas pasar dan selera risiko Anda sendiri. Banyak trader menggunakan indikator ATR saat menyetel order stop loss mereka. Perintah stop loss dapat diatur pada kelipatan atau submultiples dari nilai ATR.


Pada grafik di bawah ini, kita telah mengambil nilai ATR tertinggi, dikalikannya menjadi dua, dan menambahkan nilainya ke titik di mana harga menyentuh Amplop. Pastikan bahwa stop loss yang meningkat tidak akan menyebabkan peningkatan risiko; kurangi ukuran posisi Anda sesuai dengan itu.


Kunci 


Pedagang pintar mempertimbangkan arah tren sebelum membangun posisi di dalam area support / resistance. Praktik umum di kalangan pedagang profesional juga merupakan penerapan indikator Amplop dalam bagan untuk menambahkan zona dan dengan demikian membangun daerah dukungan / resistensi (lihat contoh di atas).
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Proudly sponsor the world's number one football team, Real Madrid, and the best football player alive, Cristiano Ronaldo




You can use any amount of leverage, ranging from 1:2 to 1:UNLIMITED*, when trading on the forex market through Exness. This provides you with the freedom to choose the trading strategies that suit your deposit size. 


Exness leverage depends on the type of trading account and the volume of funds it contains. Margin requirements increase when the funds available in a client's account increase. This is due to the increasing costs of hedging open orders. As a result, leverage is changing as well.

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